Gold Backwardation Like This Has Never Happened in History-James Turk

Gold expert James Turk says the Ukraine crisis can affect the price of gold. Turk says, “Whenever there is global tension, people go to safety, and one of the greatest safe havens of all-time has been gold. It’s been money for 5,000 years, and it’s still money and still a safe haven because it’s money that doesn’t have counter-party risk. . . . Gold does respond to geopolitical tensions, and I must admit the situation in Ukraine is getting more serious. I would not be surprised if the tensions continued to rise.” So, could this be a trigger to cause distress in the global financial community? Turk contends, “Yes, it really could. This could blow out of proportion very quickly, and it would be much more serious than what happened in the Balkans where there was a shooting war. What’s happening here is you are talking about a major economic power and the use of sanctions. In WWII, one of the causes of friction between the United States and Japan was the economic sanctions the U. S. imposed on Japan because of their incursions in China. It is eerily similar to what is happening now with Russia, and I think the stakes are just as high when you are talking about two major powers confronting themselves this way.”

As far as ratcheting up sanctions, Turk worries, “To do it in an environment where economic conditions in both the United States and Europe are very weak is even more worrying. You just do not have the economic base as you would during a period of strong economic activity. You have to remember these sanctions can bite home. People living in glass houses should not throw stones, as the old saying goes. The issue here is there is so much debt and counter-party risk between various players in the global economy that it has a knock-on effect, and we just don’t know how that knock-on effect is going to play out. If you look back to 2008, during the financial collapse then, we saw Bear Stearns get into trouble and then some European banks get into trouble and, ultimately, Lehman . . . fell apart and collapsed, and that had a knock-on effect as well. We just don’t know how it’s going to play out, but it is very worrying to see these threats of economic sanctions and imposition of economic sanctions and this war of words. It is potentially very serious.”

Turk goes on to say, “Back in 1999, gold was $250 per ounce, and the gold price has risen just over five times. Likewise, crude oil was $20 a barrel back then, and it also has risen five times since then. So, an ounce of gold still buys the same amount of crude oil as it did in 1999. So, if you get geopolitical tension and Russia threatens to do something on the energy issue, crude oil will go up and gold will go up as well. . . . The central banks can’t keep the gold price down if the oil price goes up.”

On central banks running out of gold this year, Turk says, “There are two things I am looking at. There are reports of lots of old gold bars coming out of the vaults and going into the refiners being turned into kilo bars for shipments to Asia. The fact that these are old bars that were refined thirty, forty, fifty years ago suggest they are at the back of the vault and not at the front of the vault where the newly refined bars would be. More importantly is the backwardation we are seeing in gold. . . . In other words, the spot price is higher than the future price of gold. . . . The weird thing that has happened and it’s never happened in history, when the gold price was driven down last year to its lows in June 2013, gold went into backwardation, and since then, it has been in backwardation more than 50% of the time. The only other times backwardation occurred were in 1999, with the lows in gold, and 2008, with the lows in gold. After both of those backwardations, the gold price soared. Backwardation is occurring because central banks are emptying out their vaults to try to keep the gold price from rising and to keep inflation looking low and to keep the economic conditions looking good. There is only so much gold that exists in central banks’ vaults. The fact this backwardation has been going on so long suggests to me that we’re pretty close to the point in time where the central banks are going to say ‘no more.’ We are not going to empty our vaults in the West to ship gold to the East. . . . My guess is it’s going to happen this year.”

Turk, who recently co-wrote a book called “The Money Bubble,” goes on to say, “Sooner or later, we are going to go over the cliff as we did in 2008. They saved the system, the system in 2008, but I don’t think this time around they are going to be able to save the system. So, you have to prepare for it. . . . Focus on real wealth; avoid Treasury bonds, any kind of financial asset. If you are going to own shares, own shares of a company that creates real wealth such as oil companies, agricultural companies and things of that nature. The best thing for the average family is to focus on your shelter. Make sure your house and land are secure. Then, start focusing on other types of tangible assets such as gold, silver and even things that you use around the house.”

About the Author

Greg Hunter

Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.

Comments

David H.04/28/2014 •

Greg,

I hear a lot of rumbling from some conservatives that we should place tough financial sanctions on the Russians. They say that we have the ability to stop them in their tracks if we want to. Dan Celia from American Family Radio’ program Financial Issues states that Russia is a third world economy. He say they are a basket case and we are putting the finacial markets above principle by taking such a weak stand. Are conservatives such as Dan Celia correct or are they not being realistic as to how weak our own situation really is? Thanks for what you do.

Don’t forget about us!, The military is quite an iceberg of blackhole spending to overlook when speaking of weak America. the military is quickly becoming a rabble of people with nothing to believe in since they are losing the benefits they deserve. The military is kicking enlisted maintainers to the curb faster than you say semper fidelis

Turk has led many ino financial loss. He has touted gold and silver and they crashed, and he kept saying…’any minute a moon shot…”.
Difficult to listen to this guy today….his thesis is correct, but his timing is very suspect…so far….

Hi Greg
You are the MAN!
You keep coming up with these great guests.
It is a treat to hear the views from people of this calibre from such different backgrounds and locations around the world. This gives Watchdog a unique and genuine international perspective on important political and financial affairs globally.

James doesn’t think that the EU and US or the central banks have many trumps left in their hand – I agree. With the amount of paper gold out there it will be the gold price now that will be fascinating to watch. This will signal the downfall of the fiat currencies.
2014 is shaping up to be an epic year in world history.

After reading several USA watchdog articles, I am impressed with your direct and to the point approach. This is another excellent and accurate insight into the serious state of our economy and the ultimate effects of fiat policy. Thank you.

A 2 cents comment to help placing the pieces of the puzzle together. I live in Southeast Asia and last Saturday I was listening to CCTV (China Central Television http://english.cntv.cn/). The 30 minutes report was in Chinese but subtitled in English. I’ve been trying to find it on their web site but haven’t been able to as it must be in their Chinese language section.

The tone was very hard against the USA. I had never listened to anything that hard before on CCTV.

To summarize quickly:

1. China was denouncing the USA military and economic encirclement policy against China.

2. The program was saying that the attempt by the Obama administration to restore links with its Asian partners with the TPP had failed. The reality is that China’s economic influence in Asia is rapidly growing while that of the USA is shrinking.

3. The program was denouncing the current attempt by the Obama administration to create an economic slowdown in China with the objective of slowing down the economic and political strengthening of China in the world economy.

4. The report was saying that the “Pivot to Asia” program of the Obama’s administration was relying on local political puppets and were detrimental to Asian Nations own interests.

5. The report was supportive of Russia’s position in the Crimean issue and that economic relationship between both nations will further develop positively. There will be no economic sanctions from China against Russia.

This is just a very, very short summary of a 30 minutes nonstop program. The tone was extremely assertive and very much anti-USA. As I said, I had never listened to anything like that before on CCTV. It gave me the impression that the gloves are about to come off and the real fight is about to start.

Let’s place things in perspective. The Yuan should be fully exchangeable by June of this year. By then, there will be Gold and Oil futures traded in Yuan in Shanghai. Look at the Russian to sign a huge Nat Gas contract with China in Yuan, not in petro-dollars. I would not be surprise to see China request to buy its oil from Saudi Arabia in Yuan instead of dollars.

Ukraine was the most stupid blunder by the State Department you could have ever done. Like the Jack Ass said, it is the Waterloo event that will trigger the great fall of the short lived fascist US empire. Russia is pushed outside the dollar and China sees no other option than to pair with Russia in creating a new parallel financial/monetary/economic/trading system, (which has already been in preparation for years now).

You have to marvel at how arrogantly stupid those decision makers in Washington are. Totally blinded by their arrogance. Now, who owns the gold???!!! The idiots in Washington, New York, London, Paris and Berlin dig their own grave. Their unemployed and bankrupt nations, corrupt and bankrupt financial system based on paper promises has no chance against gold backed currencies promoted by industrial and resource full nations. The US military?!! What are they going to do against the whole BRICS turning away from the USD all at once. Look at Modi win the elections in India and join the move away from the USD while quickly dropping gold import restrictions. What is the USSA gonna do? Nuke the whole planet? Their hands are tied down at this point. It is check mate. This is all coming to an end sooner than we think.

“I would not be surprise to see China request to buy its oil from Saudi Arabia in Yuan instead of dollars.”

The problem with this is OPEC (Saudi Arabia) has a treaty with the US to only use dollars (petrodollar) so Saudi Arabia (OPEC) will have to renege on the treaty to accept any other form of exchange…that will mean war. On the other hand, Russia has no part with OPEC so they’re free to deal any way they want.

I’d tend to agree with you Eric, but the USA is willing to use tactical nuclear strategies to advance their economic agenda. They would not last a drawn out war but I believe the intention is a quick and quite violent war the likes of which the world has never seen. And it’s very possible the tactical nuclear strategy would mean the end of the industrial/information age and throw us all back into a new dark age. I hate thinking this way but there is nothing Washington won’t do to maintain the empire, including wiping out 90% of the population of the Earth.

Greg,
I’m just getting up to speed on things so this is a kindergarten type question/conclusion. It seems like cashing in a 401-k to secure your physical needs (home/food/supplies) is something Mr. Turk would deem wise. This is quite scary. Thank you for your site and the info you provide.

Karen,
I see two future problems with retirement accounts in the future. One will be access to you money, and the other will be outright confiscation. People are dreaming if they think they are going to retire fat and happy while the USS Ronald Reagan is floating up and down like a cork in the Arabian Sea because the U.S. is broke. I am not a money manager and I do not give investment advice. I will say that many have emailed me and commented here and told me they cashed out and paid the tax and penalty because they wanted direct control of their hard earned money.
Greg

James Turk says to buy “real things” , and one of his examples is agricultural stock. So, say I buy 100 shares of XYZ agricultural and there is a financial crisis…… I have survived the crisis upheaval and two years after the “crisis” I try to liquidate my shares….I find XYZ has been taken over by the government, or the Chinese government. My stockbroker is MIA. The company he worked for is no longer in business. What push-ups would I have to do to liquidate my shares? What kind of “money” will they pay me in? Will the agricultural company have been nationalized? What if I didn’t register the stock in my name, rather than leave it with the stockbroker?

Seems there are too many questions for me…too much “counter-party” risk. After all, my XYZ stock is just a piece of paper, isn’t it?

What if I bought gold mining shares…..and the company didn’t go broke due to the price suppression…..would the company be nationalized like in Argentina? Same problems!

My view on Gold-mining Shares, being in another country – are also at-risk ventures. Countries like Mexico have had disposition to “nationalize” resources when it suited them. That is, AFTER the infrastructure was built and production got running. With world problems today; BRICs wanting to break-out: all it would take is a Law to restrict removing the gold from the country and only allowing national financial compensation – payment in national currency. Anything is possible; but nations will begin to watch their own backs if things get squirrel-ly.

James Turk says to buy “real things” , and one of his examples is agricultural stock. So, say I buy 100 shares of XYZ agricultural and there is a financial crisis……Banks are closed. My stockbroker is unavailable. I have survived the upheaval and two years after the “crisis” I try to liquidate my shares….I find XYZ has been taken over by the government, or the Chinese government. What push-ups would I have to do to liquidate my shares? What kind of “money” will they pay me in? Will the company have been nationalized? What if I didn’t register the stock in my name, rather than leave it with the stockbroker?

Seems there are too many questions for me…too much “counter-party” risk. After all, my XYZ stock is just a piece of paper, isn’t it?

What if I bought gold mining shares…..and the company didn’t go broke due to the price suppression…..would the company be nationalized like in Argentina? Same problems!

Hi Greg,
Like your show.
I am wondering if you can have some of these guests in the future.
(1) the V guerrilla economist ( his style is like Jim Willie having a lot of info)
(2) Greg Palast and Matt Taibbi both of them are great investigative reporters on finance and other area as well.
(3) Chris Martenson and Arthur Berman both of them are energy expert espically on oil.

Greg, I was wondering what James Turk meant by “crack up boom”? Is the “boom” like an explosion (something blowing up) ? Or is the “boom” more like an opportunity to make money ( Gold boom)? Interesting interview, with a profound thought.

The fact that we must guess about how much gold the federal reserve has at its disposal and what it is doing with it clearly shows that the public is a definitely being kept out of the loop. The guys controlling the supply and value of our money are keeping us in the dark about a lot of things—this should be very, very, very, very disturbing to all of us…..I for one am totally spooked and no longer give the central planners of our world the benefit of the doubt, in other words if it looks bad it is probably even worse by orders of magnitude….

I implore all readers and participants here at Watchdog USA: do not allow yourselves to be lulled into a sense of false security. The accepted, tried-and-true, nearly universal and conventional wisdom is, as Mr. Turk points out, is to “make sure your house and land are secure”. While this seemingly is the keystone of preparation for the system “going over the cliff”, I would not be so sanguine about property rights surviving the cataclysm. I could be wrong; I probably am, but my position reflects directly my level of trust in the powers that be, especially when they are on the verge of loss of control. Please take this possibility into consideration. Best always to everyone. PM

Paul,
My grandfather made it through the depression in Oklahoma because he owned everything he had. He even generated his own electricity. I’m betting the government will be so busy trying to pick their gut off the pavement that they will not have time to mess with us. Just remember government employee’s are paid with dollars to.

Jerry, I read everything you post here and agree with you most of the time. I admit, I could be wrong. But what if I’m not? We were a country of laws in the 1930’s. Would you say that we are now? Do you take comfort in the country’s current cavalier attitude toward property rights? I agree that owning property outright is a smart position in a legally secure context. I am not willing to bet that a government desperate to stay viable can be completely trusted. At least consider the possibility and plan accordingly. That’s all I’m asking. I am not attacking the idea of owning property free and clear. But will that mean anything when the chips are down? Thank you for your posts and ideas. Best always to you and yours. PM

Paul
You may be right. The only thing I have to go on, is based on what happened during the depression with my family. I agree with Greg, this one is hard to predict, since its never happened before. I will say during Katrina the government system broke down, as people rushed home to take care of their own families. But who knows what happens if NATO is brought in ?

I guess the thing to do is start with the worst case scenario and work your way up to whatever level you want to plan for, at the end of the day however the only thing that really matters is the level that we develop our relationship with our God….as for everything else, like the cliche goes, you cannot take it with you.

We don’t really “own” our property. The government has many means that it will seize your property, the least of which is unpaid property taxes which by the way keep escalating. Not even the shirt on our backs can be called 100% safe anymore.

intro;
“It all became clear when one day, when I received the following message from a firefighter. His point was that he found my ideas on tail risk extremely easy to understand. His question was: How come risk gurus, academics, and financial modelers don’t get it? Well, the answer was right there, staring at me, in the message itself. The fellow as a firefighter could not afford to misunderstand risk and statistical properties. He would be directly harmed by his error. In other words, he has skin in the game. And, in addition, he is honorable, risking his life for others not making others take risks for his sake. So the root cause of this model fraud has to be absence of skin in the game, combined with too much money and power at stake. Had the modelers and predictors been harmed by their own mistakes, they would have exited the gene pool, or raised their level of morality. Someone else (society) pays the price of the mistakes. Clearly, the academics profession consists in playing a game, pleasing the editors of prestigious journals, or be highly cited. Only a rule of skin in the game, that is, direct harm from one’s errors, can puncture the game aspect of such research and establish some form of contact with reality.” ~ Nassim Taleb (author of Black Swan publications)

Thanks for sharing that Al. We have ALWAYS had “skin in the game.” That is one reason that I am relatively at peace. I see lots of people every day that have absolutely NO freaking idea about what that is.

last man;
I m not sure u will get this as greg is probably focused on tomorrows interview, i dont blame him, alot of work but thanks

i just finished the HT letter, and boy he revesls alot of stuff not in interviews, wow. anyhow, as i go about i talk to alot of people. today, regional manager of applebees. i laid it out, ndaa, reserve currency, and so much more. captive aud. I wrote on a napkin, jim willies public area, and usawd to watch closely. he is one of the 99,9% sheeple. he was touched, i dont forget to share the blood of christ, shed for our sins, the LAMB OF GOD, SON OF GOD, ETC. I do this often, usually it is usa watchdog but i have been trending to both w/jim willie. both, are stellar. on the napkin i wrote, jim sinclari PCR, gerald c. greg mannrino, karen hudes, CAFitts, naom prins, rob kirby, peter shciff, and more.
btw, just got more 00 buck 9 ball shot, planted 49 half barrels of garden, raised barrels, am now buying mox fish antibotics, ceflexin, moxicillin ampicillian, and will take it to my doc K to advice me on use. go to pratriot nurse, she buys from SHTF. my wife is a nurse, she will go with, and get dossage for proper use.

if this is not posted b cause it is a late post i will copy and past for tomorrows interview. greg is a huge help to us, prsise Jesus, the son of GOD. “no man can enter the kingdom of God except by the door(Jesus) of heaven.” al ols

Great to hear from you Mohammad!! I want to ask you about you the Ukraine. What is the outcome here. I feel there will be no peace. the BRIC countries are now forming their own IMF, currency reseve, trading treaties and banking system. Russia and China have imported tons of gold. I feel this move alone renders us impotent.

These war winds are not going to stop, the EU will side with the strongest kid on the block. I believe we are getting much double talk and that they see Russia as their source of life. A China-Russia-India alliance will be an economic armada that won’t be stopped for years to come. Please tell me your view on this.

wddeni the jackass writes;
As preface, the Jackass has learned that Ukraine is the site of widespread international bank fraud. Many Nigerian scams use the Kiev banks to hide fraudulently obtained funds. Many European mafia and Russia mafiya crime families use Kiev banks. It is a lawless land, and has always been that way. Clearly, the US & NATO wish to create a firewall for the extension of both the Russian Gazprom empire and the Eurasian Trade Zone. They appear to have no plan except to pilfer, confiscate lands, and spark war. Some context in comparison. The Ukraine economic output is smaller than Ireland’s, which has 10% the population. The former Soviet republic is widely perceived as one of the most corrupt societies in the world, ranking 144th out of 177 in the Transparency International Corruption Perception Index last year. See the Bloomberg article (CLICK HERE).

The Ukraine standoff has escalated in scattered ways, with official buildings taken over in the mostly pro-Russian Eastern provinces. During the conflict, the important South Stream pipeline has been put into doubt. The 2400-km long pipeline will run from Russia, underneath the Black Sea to Bulgaria, and onto Western Europe to the large market. It will carry Russian natural gas to Europe while bypassing Russia’s neighbor Ukraine. Thus the advantage to handle Ukraine without the threat of bandit control. But its completion is a couple years away. It is a big $45 billion South Stream pipeline, suddenly put into doubt for both investor and violence reasons. The EU Energy Commissioner has frozen talks in retaliation for the annexation of Crimea. According to the Wall Street Journal, the chief executive of ENI (Italian energy giant), which holds a 20% stake in South Stream, told their parliamentary committee in March that the fate of South Stream was somewhat murky. The foolhardy NATO regards South Stream as a target of attack. The big victim would be European gas customers, and to a minor degree the Gazprom coffers. See the Oil Price article (CLICK HERE).

The US & NATO prepare to lay waste to the exposed Gazprom structure, or to threaten its stanglehold. The Russian will soon lay waste to much of the Western financial structure, founded in the USDollar and Euro currencies. It appears the US & NATO fascists look to blame Russia in the history books, but they probably will not write them in the next phase. The Gazprom giant has made a key move on the energy chessboard. They have agreed to acquire the 50% stake owned by their Berlin-based subsidiary in the South Stream Transport. Gazprom Germania will sell 205,990 shares of Dutch-based South Stream Transport to the Russian energy giant. The transport consortium is a joint venture of Gazprom, Italian ENI, French EDF, and German Wintershall Holdings, which will construct the undersea portion of the South Stream gas pipeline. The South Stream would cross the Black Sea to reach Bulgaria for continental access. The construction of South Stream began in 2012 near the Russian city of Anapa. The first gas is expected to pass through the pipeline in the 1Q2016, before becoming fully operational in 2018. See the BRICS Post article (CLICK HERE).
The Jackass fully acknowledges that Russia has a major challenge to act like superpower with more mature, reliable, and just legal system. Its actions in Ukraine on the natgas front seem to be a blemish on their business practices and poor contract law. See the BBC article (CLICK HERE) and the Russia Today article (CLICK HERE).

The Jackass anticipates an economic implosion in Ukraine by September, maybe sooner. Putin does not have to do anything except to wait for the ground to sink beneath the fascists feet. To be sure, he has ordered special forces to knock off some key captains. Besides, the Kiev crew will probably think the US is culling risky heads in competition. They will fall like leaves in autumn. Putin will just let Ukraine sink in full view, a showcase of US nazi expansion. The whole world is watching. For a side show moment of laughter, check the story of how Ukraine seeks renewable energy investors in order to loosen the Russian energy supply grip. They will put to work biomass gas from farms. Only people stupid enough in the Obama Admin would push renewable resources in a broke country. The Western media does not tell that Ukraine has the seventh largest coal reserves in the world. See the Business Week article (CLICK HERE).

Denis Perevezentsev at Moodys in Moscow concluded, “The amount of cash on balances of Russian companies, committed credit lines from banks, and the operating cash flows they will get, is sufficient for the companies to comfortably service their liabilities.” By contrast the Kiev regime is truly bankrupt in every sense of the definition. They lack funds, natural gas, even fertilizer. Elements of their ragtag military are selling US-supplied weapons to Russia and requesting asylum. Gazprom is in a position to pull the plug. But Putin will wait instead, and let Ukraine sink in the quagmire the US constructed for them. The US has a printing press for phony wealth creation, but Russia has seemingly unlimited oil & gas output toward more valid wealth creation, and a devoted client base. Russia also has solid affirmed energy alliance with China, therefore impossible to isolate. The USMilitary has powerful weapons, but the Russian Military might have much more superiority in key tactical areas like supersonic short-range missiles, EMPulse weapons, and radar jamming devices. Russian can comfortably wait out the US & NATO forces on his border. The risk is for the United States to conduct a false flag event that creates great confusion, a trigger for a wider war. See the Zero Hedge article (CLICK HERE) and the Bloomberg article (CLICK HERE).

wddeni
david stockam said; David Stockman paints a dire picture for China, which he calls stuck in a Ponzi scheme, in the process of unraveling. See his essay on his Contra Corner website (CLICKHERE).

to jim is said;
I read the whole article, slowly, and didnt realize how bad china has their tit in ringer

from e mail JW says;
Jim Willie CB
8:27 PM (19 hours ago)

to me
no doubt
they might lose 100 million people
they might see 200 million go broke
but China would not miss a stride in their race to lead with Russia
Russia has pain coming too
it is all about control of resources and water
the US has exhausted its resources and is contaminating its water

Thanks Allen.
The game in Ukraine is almost over. All Putin has to do is wait, and watch us self destruct. Pretty simple. And as Rob Kirby and others have said, once the Gold supplies run out, the all important question will be asked by the Chinese. What are you using to back up all that money that you are printing? You can almost hear the thud. Forget about good faith and credit. The U.S. is out of both.

It will escalate, Russians want HAGIA SOPHIA no doubt, it means a lot to them, emotions are high to get it back since it was considered the jewel of the eastern orthodox church, and the neck of the bottle that is suffocating their fleet that they want to break open.

I like what you always say: lots of sins to go around in M.E. but:
Kerry is in the open on the opposite site of Israel, this is the only admin i see having this friendly position with Iran and cold relation with Israel.
I think we can conclude that Israel has to find other ways to defend itself.

Of course Israel will be alone, unprotected, and vulnerable, how else will the God of Abraham, Isaac, & Jacob prove to the world that He took care of business and not some big brother like America did it for them. The M.E. is shaping up just as the Bible has predicted, He is in control. Russia is also coming back now and will be part of, if not the King of the North & its armies who marches on Israel and will be caught, captured, and destroyed.

Greg: another great guest and interview. As I have told you- a friend told me 6 years ago – get ,out of the dollar, and get gold and silver. He said, ” if it’s printed on paper(any paper) , it’s only worth the paper it’s printed on”! OH SO TRUE!!!

Somehow I think he might be right. If the Saudi’s back the Chinese Yuan as reserve currency for oil, it game over for the dollar. Someone please talk me off this ledge and convince me why they wouldn’t ? The Chinese have the worlds largest manufacturing base using more oil all the time. The Saudis have had their Gold stolen by the Cabal. And they got thrown under the buss in Syria by Obama. I hear the Saudi wells are bringing up about 80% water now, so why wouldn’t they cut a deal with the Russians and Chinese?

Hi Greg: Most of your guests believe the Dow will tank, US$ will crash and gold and silver will hit super highs. Harry Dent, says the Dow will tank but so will gold and silver and real estate and the US$ will be one of the few currencies to hold value. I’m holding gold, silver and lots of real estate not to mention food and water filtration. Can you evaluate Harry’s position to see if he has any validity? PS Never miss your interviews.

Bob,
I don’t know what Mr. Dent is talking about but I think he is referring to deflation which is debt destruction. I am not sure you are going to get access you your stock portfolio when you need it, that is why many here say to diversify into gold and silver held in you direct control. What is going on in the financial world today has never gone on in recorded history. Gold has a 5,000 year track record od being a store of wealth and money. I don’t see how you can not have gold and silver in your investment/survival plans. This is not a money making trade but a survival strategy and nothing more.
Greg

Bob.
What is the value of the dollar being backed by If not Gold or petroleum ? There is no Gold, in Fort Knox and from what I’m hearing the Saudi’s are pumping 80% water. That means all you have left is faith, and when that’s gone……..oh boy.

They aint gonna take it!!! White people are gonna riot! david manning
David Manning author of the oblation hour goes on a short riot about Obama and white people rioting in the streets.
YOUTUBE.COMhttp://www.youtube.com/watch?v=vETPO9237B0&sns=fb

Very interesting vid. I agree with him. I too am tired of the race card manipulations of people who cry victim when they’ve had freedoms & unwarranted considerations for decades. I currently have an EEO against
the U.S.P.S because I was terminated after filing a sexual harrassment claim against a black man (I’m a white woman). I saw 2 boxes of material against this guy who has been caught as a peeping tom of women’s bathrooms among other prior claims on him. But a sweet heartdeal was cut for him because of his friendship with the black union president, the black post master and the black district manager. This is ugly business but it has to be done. And what is being said in the vid is coming.

Greg, we sometimes second guess ourselves on this site about an event that has never really happened before in recorded world history. I would like to compare the collapse to the depression, but it really doesn’t fit that paradigm. During the depression, we did not have an urban environment like we have now, or the multilevel government support programs that have been created in the last 40 years. In large extent we are also reliant upon technology to support all of our modern conveniences. At the bottom of this pyramid we have a foundation built upon an imaginary peg called fiat money. So I sit here and think sometimes, when that’s gone what will keep the entire system from collapsing in upon itself ? Pretty sobering thought isn’t it? Chances are If you’re tied to the system for your well bring, its going to pull you under with it, like a sinking ship when it goes down.

I guess at this point all we have left is time, and a choice. People can choose to be proactive and plan for the worst, or they can pretend like nothing is going to happen and kick the can down the road. Like you said Greg. 2013 was a gift. But like all gifts they come with strings attached to them. This one has one that says “the end of reserve status”.

John Chew
The mining industry is VERY dependent on the government for permits. If they had a mind to stand up, the government could/would pull the rug out and shut them down. Besides, the mining industry, according to Andy Hoffman, who is a mining expert, says they are run by people who are not so bright.

I don’t think it would be the miners who need to fight for Monetary Gold. Political will, and not commercial interests is where the battle belongs. America, the historically biggest commercial market, would have some influence – but for propaganda against the value of gold; and somehow their wallets are not squeezed enough. The leadership in America has gone “all-in” for Dollar backing, and has painted itself in a corner. There is too much resistance to overcome to value gold in America correctly.
I read recently that some miners have BOUGHT physical gold as investment – so someone is still a true believer. At the end of the day there will be buyers; it will be worth more; and business will pick-up for producers: who, after all, must sell their product. I fear, though, that it will take the BRICs to force gold’s revaluation – but long after the West squanders it’s reserves.

The international mega corporations must know whats happening….I would imagine that a major crack will be when the Coca-Cola’s of the world start converting currencies into hard assets or other more stable currencies.

You and I probably read the same article from King World News where Mr. Turk said at some point in 2014, the US government would run out of golf to sell to China and Russia via bullion banks. That could turn out to be some inflection point, all things considered.

Wars seem to coincide or start with economic or acute, massive currency adjustments.

While he couldn’t give an approximate time, I can’t see how the system collapse doesn’t happen before the 2016 general election.

“The figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January. Not only was this a one month record… it was a WHOPPER indeed.
Last year, the U.S. exported a total of 215 metric tons of gold bullion to Hong Kong. This was not the total amount of gold exported to Hong Kong as some smaller quantities of Dore’ and precipitates made their way into the country as well.
However, Hong Kong received more gold than any other country… Switzerland came in second at 150 metric tons.”

The mines collectively in the U.S. only produce 240 tons of gold per year.

Per Bill Holter: “It turns out that the U.S. exported 80 tons of gold in January. As you might guess, the bulk of it (57 tons) was sent to Hong Kong and then followed by the Swiss. WOW, 80 tons! “
“We are sending gold (and lots of it) mainly to China because if we don’t…they will pull the plug on our financial system. I have written to you all along that once the flow of gold to China stops…they will view it as a default. China will not pull the plug as long as we continue to send gold because they want as much as they can get …but more importantly they want to know that “we are out”…completely.”

I think Turk is spot on when he talks about holding hard assets for the future. He mentioned farmland and forested land; I also think water resources will be prime assets for the future (river land and land adjoining lakes…). I recently listened to a program about the current increasingly violent weather patterns, and the theory of the 510 year drought cycle; how the beginning of that drought cucle is now what California is facing. There are some predictions too about how the dryness or wetness and warmth or cold patterns of the weather affect crops and thus human migration and war patterns. Fascinating stuff, and a not so great future being predicted for our nation’s crop yields. Climatologist Cliff Harris has some interesting theories, including a potential mini ice age coming in the 2030’s…

Anne,
I agree that hard assets are good to protect your wealth, with a proviso that you make sure you have cash on hand to pay your property taxes when due. A property lean for non-payment of taxes would wipe you out. Also, make sure you can prove your ownership….don’t rely on the county to help you.

Second….the drought is very important…..I have read that a vast majority of our fruits/veges come from California. Best to make sure you have some heirloom seeds so that you can grow your own food. Make sure your seeds are heirloom so that you can harvest seeds from your veges to grow additional plants. Non heirloom seeds are engineered so that the seeds will not produce, or if they do, the veges are almost inedible. If you don’t have room for a garden, you can buy a large circumference plastic “sewer” pipe from the big box store and stand it on end, cut out some holes in the side all around, and plant your lettuce, etc.

Whilst a mini Ice Age is concerning, I believe something more devasting is drawing upon the world in the 2030’s. This cycle is drawing near its end and it is humanity as a whole that is at risk again. Tectonic plate shifting, earthquakes and volcanic activity are all demonstrating signs of an increasingly unhappy planet. Global warming/Climate change is a resultant of this activity.
We are headed towards a fiery future…hellish hot with devastion and destruction of civilisation.
One does not/cannot prepare for these events.

Turk makes a very salient point at 2.45 of this interview.
“Economic Sanctions imposed upon another nation by the USA – led to WAR”.
The question posed some time ago was…How long can Putin hold back his retaliation in the face of ever increasing economic bombardment leading to further deterioration of economic conditions ? It will not be the Ukraine nor the Russian invasion of itself that delivers a spark to the WWIII event. It will be the demoralised and suffering population of Russia that demands retribution against the instigators.
I have no doubt that Russia will retaliate and align with the ME nations to seek revenge in the most horrific way possible.
If you look at JT during this part of the interview, he seems distressed at the thought of the proposition.
The question that now must be answered is
Is the provocation intended ?…… AND
To what end ?
Consequences are defined as ….a result or effect, typically one that is unwelcome or unpleasant, of something occurring earlier.
A person with half the IQ of Einstein could readily conclude that the instigators of sanctions against Russia should expect dire consequences. Common minds may be sound but brilliant minds can be devious. WWIII is already written into the future history books.

“Back in 1999, gold was $250 per ounce, and the gold price has risen just over five times. ”
Which means silver is close to a 30% manipulated discount these days. Imagine where Nasdaq would be if their biotech and electronics companies had to pay 30% more for most of their raw materials. After all, Blackrock has 28 billion on the line just in Apple.

You were right last friday you comment regarding the Palastinia/Esrael negotiation.
GAZA (Reuters) – A Palestinian unity deal will not lead Islamist group Hamas to recognise Israel’s right to exist and will not result in any Gaza militants coming under President Mahmoud Abbas’s control, a senior Hamas official said on Tuesday.

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Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin.

USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.